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-An Economy Produces at Point a on the PPF Shown

Question 374

Multiple Choice

  -An economy produces at point a on the PPF shown in the above figure. A drought reduces the amount of wheat produced and the economy produces at point b. The opportunity cost of a unit of wheat A)  remains the same. B)  increases. C)  is impossible to calculate without numbers on the axes. D)  decreases.
-An economy produces at point a on the PPF shown in the above figure. A drought reduces the amount of wheat produced and the economy produces at point b. The opportunity cost of a unit of wheat


A) remains the same.
B) increases.
C) is impossible to calculate without numbers on the axes.
D) decreases.

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